Nation & World

Posted: Thursday, September 29, 2005

E-Trade Financial Corp. on Thursday said it will buy BrownCo from JPMorgan Chase & Co. for $1.6 billion, a move that intensifies its rivalry with Ameritrade Holding Corp. This past summer, both E-Trade and Ameritrade announced plans to take over smaller firms.

The founder and the chief financial officer of a beleaguered Bayou hedge fund each pleaded guilty to conspiracy and fraud charges Thursday for their roles in a scandal that allegedly cost investors about $450 million. Prosecutors say Bayou issued fictitious weekly, quarterly and annual reports that inflated its profits to attract new investors and lull existing investors into keeping their money in the fund.

PepsiCo Inc., the soft drink and snack foods maker, said Thursday its third-quarter profit dropped because of a charge related to repatriation of overseas earnings, but its results without the charge beat Wall Street estimates as its revenue rose at its fastest pace since late 2001. PepsiCo (NYSE: PEP) shares rose nearly 3 percent.